This invention generally relates to a method and system for automated assistance with investment decisionmaking. In particular, the invention relates to assisting retail customers with identifying investment needs, setting investment objectives, educating on potential investments using historical performance, modifying objectives, and identifying and making investments, based on the customer""s profile; portfolio, and investment preferences.
The problem with existing methods of buying and selling investments is that typical investment suggestions often do not address such issues as suitability for a particular customer, suitability in terms of risk tolerance or in terms of time frame that the customer should be investing, and whether the customer prefers a conservative or more aggressive approach to investments. Products are instead typically sold based on a customer request for a particular product which, in fact, may not actually by best to meet the customer""s needs. Also, the product choice may be based on what sales people are comfortable selling which again may not be best for the customer.
Existing computerized products do not provide a single comprehensive system to determine the best products for a customer. They may consist only of pieces of the investment decisionmaking process. These pieces include systems for creating charts to examine historical programs, systems for straight data entry to open an account, etc.
It is an object of the present invention to overcome the shortcomings discussed above with a method and system for assisting a customer with investment decisions. The system, referred to as Retail Investment Objective Setting (xe2x80x9cRIOSxe2x80x9d), takes inputted information necessary to determine customer preferences and needs in an interactive manner using charts to educate and other information to assure that customer preferences and needs are met by the investment portfolio selected. The following are the major aspects of the process of an embodiment of the present invention.
A user accesses the system using a password. In general, it is anticipated that an investment staff person would access the system in the presence of a customer wishing to make investment decisions.
The Determine Personal Profile Module within the system captures customer personal and financial data. The financial data is played back to the customer in the form of a current asset allocation. Further profiling (xe2x80x9cfilteringxe2x80x9d) questions, result in an asset allocation recommendation that is distinguished by investment time horizon, risk and return, as well as additional objective and subjective criteria (i.e., experience, staying power).
Within this module customers can identify either one or a number of financial goals against which asset allocations are to be earmarked.
The outcome of the Profiling module is an asset allocation recommendation that the customer, with the guidance of the account officer, identifies as indicative of his or her investment objectives.
Multiple portfolios (asset allocations) serve as the basis of the recommended asset allocations. The number of portfolios can vary by country, and, in an embodiment of the present invention, they are updated regularly, such as twice yearly. The recommended allocations reflect policy and strategic asset allocations and market forecasts from internal policy determinations by the financial institution providing the service.
When Profiling is complete, the system proceeds to the Recommend Asset Allocation Module. In this module, the historical performance of the recommended asset allocation is shown using cumulative and quarterly volatility historical performance charts. Once final agreement on an asset allocation approach is reached, specific investment products (mutual funds) are recommended as a means of implementing the asset allocation.
After the Recommend an Asset Allocation Module is completed, the system proceeds to Set Up Your Account, the final module. Within this module, the customer, with guidance from the Account Officer, selects specific mutual funds for purchase and identifies some specific parameters regarding the purchase.
At the conclusion of the session a summary report is generated which recaps Customer profile, investment objective(s), asset allocation and fund recommendation(s), product factsheets and fulfillment details.
Additional objects, advantages and novel features of the invention will be set forth in part in the description which follows, and in part will become more apparent to those skilled in the art upon examination of the following or may be learned by practice of the invention. The objects and advantages of the invention may be realized and attained by means of the instrumentalities and combinations particularly pointed out in the appended claims.
To achieve the stated and other objects of the present invention, as embodied and described below, the invention may comprise the steps of signing onto the system by the user, providing demographics information, providing asset information, selecting an investment amount, selecting goals for investment, selecting an investment time horizon, selecting a potential risk/return relationship, selecting a profile for investment, selecting a choice for staying power, and selecting information on investment experience. The system determines a recommended investment portfolio based on the user inputs and selections and compares the recommended portfolio and performance to the customer""s current allocation. The user then selects a risk class, purchases selected products, and ends session.